Australian milk production well below 2015 level [News Oceania n°21/2016]

Period: October 3 – 14, 2016

AUSTRALIA

• Milk production: in August was -9.28% below August 2015.
• Weather situation: for early stages of the new dairy season there has been good spring rainfall across much of southeastern Australia, lowering some irrigation water prices. Pasture growth has responded favorably which is expected to ease feed prices. However, rainfall has been a bit heavy in some areas, adversely affecting milk quality and fodder. There has also been some damage from flooding.

NEW ZEALAND

• Weather situation: no information for the period of reference.

MILK PRODUCTION

• Australia *: -9.77% (Jul-Aug 16 vs. Jul-Aug 15, August data are provisional)
• New Zealand *: -1.99% (Jun – Aug 16 vs. Jun – Aug 15)

BUTTER (82%): prices firmed. Many buyers are motivated to secure supplies now due to perceived potential for further price firming.

CHEDDAR CHEESE: prices are unchanged. The market is in a good position in terms of stocks and current demand.

SMP: prices are weaker at the top of the range. Pressure from European pricing and stocks is weighing on global export markets.

WMP: prices weakened. Current buyer interest is not as strong as recent weeks, with ample stocks to meet demand.

Plans to build in New Zealand a new infant formula plant focused on the export market have recently been announced. This is an example of continuing efforts by processors to move milk into higher return dairy sectors.

CLAL.it – Today’s GDT Auction results (October 18, 2016)

Note: · Assessments about market trend are expressed in US$; · * Dairy season: July, 1st – June, 30th (Australia), June, 1st – May, 31st (New Zealand).

Source: USDA summarized by the CLAL Team

More informations about milk production in New Zealand and Australia are available on CLAL.it